Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income from Operations Before Income Taxes

	December 31, 2014			December 31, 2013		December 31, 2012
The components of income from operations before income taxes are as follows:
Domestic	$	(1,151,984	)	$	12,782,598	$	11,175,638
Foreign		12,290,567			10,231,223		95,768
Total	$	11,138,583		$	23,013,821	$	11,271,406

Provision for Income Taxes

The current and deferred components of the provision for income taxes on operations are as follows:
Current	$	2,480,609		$	4,123,752	$	312,630
Deferred		487,760			2,796,914		(3,197,261	)
Total	$	2,968,369		$	6,920,666	$	(2,884,631	)
The jurisdictional components of the provision for income taxes on operations are as follows:
Federal	$	214,274		$	3,322,032	$	(2,915,673	)
State		(67,383	)		1,305,388		115,307
Foreign		2,821,478			2,293,245		(84,265	)
Total	$	2,968,369		$	6,920,665	$	(2,884,631	)

Consolidated Deferred Tax Assets or Liabilities

The Company’s consolidated deferred tax assets (liabilities) consist of the following:

	December 31, 2014			December 31, 2013
Deferred tax assets:
Temporary timing differences	$	3,069,000		$	3,018,000
Net operating loss carryforwards		12,580,000			12,264,000
Tax business credits carryforwards		1,782,000			1,520,000
Total deferred tax assets		17,431,000			16,802,000
Valuation allowance		(17,298,000	)		(16,571,000	)
Net deferred tax assets	$	133,000		$	231,000
Deferred tax liabilities:
Goodwill	$	(251,000	)	$	(44,000	)
Net deferred tax assets (liabilities)	$	(118,000	)	$	187,000

Reconciliation of Federal Statutory Rate to Effective Income Tax Rate

The reconciliation of the federal statutory rate to the effective income tax rate for the fiscal years ended December 31, 2014, 2013 and 2012 is as follows:

	Period Ended,
	December 31, 2014					December 31, 2013					December 31, 2012
Income before income taxes	$	11,138,583				$	23,013,821				$	11,271,406
Expected tax at statutory rate		3,787,118		34.0	%		7,824,699		34.0	%		3,944,996		35.0	%
Adjustments due to:
Difference between U.S. and foreign tax		(1,470,662	)	(13.2	)%		(1,227,747	)	(5.3	)%		(8,332	)	(0.1	)%
State income and franchise taxes		121,561		1.1	%		1,121,821		4.9	%		357,866		3.2	%
Permanent differences		(171,921	)	(1.5	)%		(298,185	)	(1.3	)%		242,629		2.1	%
Change in valuation allowance		727,157		6.5	%		(508,629	)	(2.21	)%		(7,272,092	)	(64.5	)%
Other		(24,884	)	(0.2	)%		8,707		0.1	%		(149,698	)	(1.3	)%
Provision (benefit) for income taxes	$	2,968,369		26.7	%	$	6,920,666		30.1	%	$	(2,884,631	)	(25.6	)%

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	December 31, 2014
Unrecognized tax benefits at January 1, 2014	$	1,917,247
Gross increases – tax positions in prior period		125,000
Gross increases – tax positions in current period		38,319
Unrecognized tax benefits at December 31, 2014	$	2,080,566